Q A(11Jun11).pdf

Question & Answers Solicitation No. FA5209-11-T-0092

Transport of ISO Containers and Government-owned/controlled Containers As of 11 Jul 11

No. 1 Area: Exhibits - Pricing Schedule

Question: Line Item A015AJ, what do you mean by “Paid by non-appropriated funds”? Are there any reasons for you to think that contractors may want to increase the rate? What are the actual risks (if any) that the contractor possibly face if the works are to be paid by "non-appropriated fund"？

Answer: Non-appropriated funds are used to augment funds appropriated by the Congress to provide a comprehensive, morale-building welfare, religious, educational, and recreational program, designed to improve the well-being of military and civilian personnel and their dependents. All freight under non-appropriated funds organizations are not exempted from Japanese taxes, therefore, offerors may consider to cover such non-exempted costs. The rate (%) to be offered shall be appropriate amount and reasonable.

Japan-U.S. Status-of-Forces Agreement <http://www.mofa.go.jp/mofaj/area/usa/sfa/index.html>

ARTICLE XV

1. (a) Navy exchanges, post exchanges, messes, social clubs, theaters, newspapers and other non-appropriated fund organizations authorized and regulated by the United States military authorities may be established in the facilities and areas in use by the United States armed forces for the use of members of such forces, the civilian component, and their dependents. Except as otherwise provided in this Agreement, such organizations shall not be subject to Japanese regulations, license, fees, taxes or similar controls.

(b) When a newspaper authorized and regulated by the United States military authorities is sold to the general public, it shall be subject to Japanese regulations, license, fees, taxes or similar controls so far as such circulation is concerned.

2. No Japanese tax shall be imposed on sales of merchandise and services by such organizations, except as provided in paragraph 1 (b), but purchases within Japan of merchandise and supplies by such organizations shall be subject to Japanese taxes.

3. Except as such disposal may be authorized by the Japanese and United States authorities in accordance with mutually agreed conditions, goods which are sold by such organizations shall not be disposed of in Japan to persons not authorized to make purchases from such organizations.

4. The organizations referred to in this Article shall provide such information to the Japanese authorities as is required by Japanese tax legislation.